Master Production Schedule - 550 Words

Master Production Schedule (Math Problem Sample) Content: Master Production ScheduleNameCourseInstitutionDateMaster Production ScheduleThe key idea is: we have a forecast, but it turns into and actual order when we receive a customer order. MPS starts with a preliminary calculation of projected inventory. This reveals when we need production to get additional inventory.Negative projected on-hand inventory is the signal for production. Suppose the economic production lot size for this product is 75 units. Whenever production is called, 75 units are produced. Now we can determine available to promise at each period.Period 1 2 3 4 Forecast 50 50 50 50 Customer orders 52 35 20 12 Projected on hand inventory 23 48 73 23 MPS 75 75 75 ATP -12 20 43 Sum booked customer orders week by week up to the next week of production. This is booked orders. The remaining inventory is ATP. ATP is only calculated for the first week and for weeks in which there is a MPS quantity. (In this example: weeks 1, 2, 3)Available to promise in week 1 = Inventory in week 0 + Production in week 1 - Customer Orders at week 1 - Customer Orders at week 2ATP (1) = I (0) + P (1) à ¢Ã¢â€š ¬ CO (1) - CO(2)ATP (1) = 0+75 -52 -35 = -12Period 1 2 3 4 Forecast 50 50 50 50 Customer orders 52 50 30 12 Projected on hand inventory 23 48 73 23 MPS 75 75 75 ATP -27 -5 33 Change...